BOSTON (TheStreet) -- Warren Buffett recently said that stocks will outperform gold and bonds, calling them the safest asset by far. He's putting Berkshire Hathaway's (BRK.B) - Get Berkshire Hathaway Inc. Class B Report money where his mouth is, buying up shares of DirecTV (DTV) and IBM (IBM) - Get International Business Machines (IBM) Report.

In a


article published last week, Buffett offered investors a preview of his upcoming annual shareholder letter. Buffett said equities will "prove to be the runaway winner," with the Oracle of Omaha talking down investments in gold and bonds. Regarding the latter, Buffett said bonds are a dangerous asset because they are currency-based and due to interest rate risk.

Warren Buffett

During the fourth quarter, Buffett put some cash to work and bought several stocks. The billionaire investor opened a new position in dialysis services company


(DVA) - Get DaVita Inc. Report

, acquiring about 2.7 million shares, as well as

Liberty Media



Buffett also added to several of his existing positions, notably purchasing 22.3 million shares of

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

, one of his favorite picks. That brings his total share count in Wells Fargo to 383.7 million, with a market value of $10.6 billion, making it Berkshire's third-largest disclosed holding.


(KO) - Get Coca-Cola Company Report

remains Berkshire's largest position with a market value of nearly $14 billion.

Professional investors who manage more than $100 million, like hedge funds and mutual funds, are required to disclose their equity holdings, options and convertible debt on a Form 13F filed to the

Securities and Exchange Commission

within 45 days of the end of a quarter. Funds aren't required to report short positions betting on declines. Berkshire ended the fourth quarter with 34 reported holdings with a market value of $66.1 billion.

Buffett doesn't always publish his holdings in so-called 13-F filings. If he's building a stake in a company, he uses a loophole to opt out of disclosure regulations. But once his holdings are released publicly, people tend to follow him, pushing up share prices.

>>View Warren Buffett's Portfolio

According to Tuesday's filing, Buffet added to several other positions, including


(IBM) - Get International Business Machines (IBM) Report

, DirecTV,

CVS Caremark

(CVS) - Get CVS Health Corporation Report



(V) - Get Visa Inc. Class A Report

TheStreet Recommends


General Dynamics

(GD) - Get General Dynamics Corporation (GD) Report



(INTC) - Get Intel Corporation (INTC) Report

, and

Verisk Analytics

(VRSK) - Get Verisk Analytics Inc Report


IBM and Intel were notable picks for Buffett in the third quarter, becoming the first technology buys for Berkshire. Buffett had avoided investing in technology companies because he said they're difficult businesses to predict. Buffett's entry into IBM is based on the company's service offerings, which are more predictable and conducive to his value-investing strategy. IBM is Berkshire's second-largest holding, with a market value of $11.7 billion as of Dec. 31.

DaVita and DirecTV were top picks by Ted Weschler, the hedge fund manager who recently closed up Peninsula Capital Advisors to join Berkshire Hathaway.

Buffett did unload some shares during the fourth quarter, notably dumping his entire stake of 421,000 shares of

Exxon Mobil

(XOM) - Get Exxon Mobil Corporation Report

. He also reduced his stakes in

Johnson & Johnson

(JNJ) - Get Johnson & Johnson (JNJ) Report


Kraft Foods


, selling 8.4 million and 2.7 million shares, respectively. Kraft remains Berkshire's sixth-largest holding by market value while Johnson & Johnson ranks ninth.

-- Written by Robert Holmes in Boston


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